Farm Debt Mediation Act (S.C. 1997, c. 21)

Act current to 2014-09-01

Marginal note:Administrator’s duties on receiving application
  •  (1) On receipt of a duly completed application under section 5, the administrator shall forthwith

    • (a) give notice of the application to

      • (i) each person whose name is listed as a creditor in the application, in the case of an application under paragraph 5(1)(a), or

      • (ii) each person whose name is listed as a secured creditor in the application, in the case of an application under paragraph 5(1)(b);

    • (b) in the case of an application under paragraph 5(1)(a), issue a thirty day stay of proceedings against the farmer by all the farmer’s creditors, and give notice thereof to each person whose name is listed as a creditor in the application; and

    • (c) determine whether the farmer is eligible under this Act to make that application, which determination may be based on, among other things, a preliminary review of the farmer’s financial affairs.

  • Marginal note:Certain decisions final

    (2) In the case of an application under paragraph 5(1)(b), a determination by the administrator under paragraph (1)(c) is final and is not subject to appeal.

Marginal note:Amendment of application
  •  (1) A farmer who has made an application under paragraph 5(1)(a) or (b) may, at any time before the termination of the mediation, request permission from the administrator to amend the application to be an application under paragraph 5(1)(b) or (a), as the case may be, and the administrator may grant that permission if satisfied that the farmer is eligible to apply under paragraph 5(1)(b) or (a), as the case may be.

  • Marginal note:Two year period

    (2) For the purposes of section 20, an application that has been amended pursuant to subsection (1) is deemed to have been made as an application under paragraph 5(1)(b) or (a), as the case may be, on the day when the original application was made.

FINANCIAL REVIEW

Marginal note:Financial review
  •  (1) Where the administrator determines that the farmer is eligible to make the application, the administrator shall as soon as possible undertake, or cause an expert referred to in subsection 4(4) to undertake, a detailed review of the farmer’s financial affairs.

  • Marginal note:Nature of review

    (2) The review mentioned in subsection (1)

    • (a) must include the preparation of

      • (i) an inventory of all the assets of the farmer, and

      • (ii) financial statements of the farmer’s farming operation;

    • (b) may, in the case of an application under paragraph 5(1)(b), include a recommendation, notwithstanding that paragraph, that one or more creditors who are not secured creditors participate in the mediation; and

    • (c) may include the preparation of recovery plans for the purpose of reaching financial arrangements with creditors.

  • Marginal note:Preparation of recovery plans

    (3) Where a farmer requests the administrator that the recovery plans referred to in paragraph (2)(c) be prepared by a person of the farmer’s choice, the administrator may, in accordance with the regulations, if any, enter into an agreement for that purpose.

  • Marginal note:Report

    (4) The results of a review under this section must take the form of a report prepared by or on behalf of the administrator.